9. INCOME TAX EXPENSE
Group
Company
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
Malaysia income tax
- Charge for the year
22,913
39,907
14,319
25,303
- Overprovision in prior year
(766)
(787)
(739)
(948)
22,147
39,120
13,580
24,355
Deferred tax (Note 18)
- Origination and reversal of
temporary differences
(2,986)
(2,962)
(164)
(10,050)
- Underprovision in prior year
3,680
1,207
11
210
694
(1,755)
(153)
(9,840)
22,841
37,365
13,427
14,515
Malaysian income tax is calculated at the statutory tax rate of 25% (2014: 25%) of the estimated assessable
profit for the year. The domestic statutory tax rate will be reduced to 24% from the current year’s rate of 25%,
effective from year of assessment 2016. The computation of deferred tax as at 31 December 2015 has reflected
these changes.
Reconciliations of the taxation applicable to profit before taxation at the statutory rate to the income tax
expense of the Group and the Company are as follows:
Group
Company
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
Profit before taxation
95,100
89,783
116,122
185,896
Taxation at statutory tax rate of 25% (2014: 25%)
23,775
22,446
29,031
46,474
Effects of changes in tax rates on closing
balance of deferred tax
290
486
11
(44)
Effects of share of results of Associates
(450)
(934)
-
-
Income not subject to tax
(15,616)
(765)
(21,334)
(40,353)
Expenses not deductible for tax purposes
10,357
13,034
6,447
9,176
Tax incentives
(3,215)
(2,483)
-
-
Deferred tax assets not recognised
4,786
6,090
-
-
Utilisation of previously unused tax losses and
unabsorbed capital and agricultural allowances
-
(929)
-
-
Overprovision of income tax in prior year
(766)
(787)
(739)
(948)
Underprovision of deferred tax in prior year
3,680
1,207
11
210
Income tax expense for the year
22,841
37,365
13,427
14,515
n otes to th e f i nan c i a l statements
Bo ustead plantati o ns Berhad
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